Another Employee of Crisp & Cole pleads guilty to Mortgage Fraud

Megan Balod pleaded guilty in front of United States District Judge Oliver W. Wanger according to the press release issued by United States Attorney Benjamin B. Wagner. Ms. Balod was indicted on four counts of wire fraud involving Crisp & Cole Associates, also known as Crisp & Cole Real Estate. Ms. Balod as a part of her plea agreement is cooperating with federal investigators in the government’s continuing investigation into the companies alleged mortgage fraud.

Prosecutors in the case Assistant United States Attorney’s Sheila Oberto, Kirk Sherriff, and Stanley Boone state that the investigation into the mortgage fraud is extensive and is being conducted by the Federal Bureau of Investigation. United States Attorney Benjamin Wagner, stated that The United States Attorney’s Office will vigorously pursue all those responsible in mortgage fraud schemes that have devastated the real estate and financial markets.

Ms. Balod according to her plea agreement stated that along with other individuals working at Crisp & Cole and Tower Lending they conspired to defraud mortgage lending institutions by processing and submitting fraudulent mortgage applications and supporting documents. The alleged fraud scheme stated in May of 2004 and continued through May of 2006 under the direction of one of Crisp & Cole owners. Ms. Balod for her part was instructed to purchase eleven properties. The properties in question were valued at over five million four hundred thousand dollars. Ms. Balod purchased the properties and obtained loans for those purchases and knowingly made misrepresentations on the applications for loan as well as omitted relevant information.

Ms. Balod stated that she was aware that mortgage lending institutions relied on those statements and omissions when qualifying individuals for purchase or refinance. Ms. Balod on the applications provided fraudulent information in regard to her employer, years worked, position, income, and outstanding liabilities. Ms. Balod in addition stated on applications that she would occupy some of the homes involved when she had no intention of doing so. According to her plea agreement, she and other individuals knowingly commit the act to defraud mortgage lenders.

The loans and properties involved in the case have been foreclosed on after payments on those loans were not made to the mortgage lenders involved.

Kevin and Leslie Sluga, Ms. Balod’s parents have also pleaded guilty in the case. Jerald Teixeira, a former officer for Tower Lending, Crisp & Cole’s affiliate also pleaded guilty to charges involving Crisp & Cole.

Megan Balod is scheduled to appear before United States District Judge Oliver Wanger on July 12, 2010 at 1:30 P.M. for sentencing. The maximum sentence Ms. Balod is facing is twenty years in federal prison for wire fraud and a fine of two hundred fifty thousand dollars.  The court allows judges to determine at their discretion the sentencing based on consideration of the federal guidelines.

The United States Attorney’s Office and the Federal Bureau of Investigation created the San Joaquin Valley Mortgage Fraud Task Force in Fresno to aid in the prosecution of mortgage fraud coming out of the southern half of the Central Valley in 2009. The Task Force includes federal, state and local law enforcement agents and prosecutors.


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